Description
Report on Radio Mirchi and radio industry analysis. The report covers the radio mirchi as a brand and also the industry analysis of radio in india.
Company – ENIL Brand- Radio Mirchi
Introduction ENIL (Entertainment Network India Ltd.) was incorporated in 1999 under the Bennett Coleman group. In 2000, where the Government formally announced auction of 108 FM frequencies across 40 cities, Entertainment Network (India) Limited won the largest number of licenses, thereby acquiring a national footprint, and becoming the only commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities. Earlier available in the seven cities of Mumbai, Delhi, Kolkata, Chennai, Pune, Indore and Ahmedabad, now it is also available in key markets of Bangalore, Hyderabad, Jaipur, Patna & Jalandhar thereby taking the tally to 32 stations across India .It's the largest private FM Radio operator in the country in terms of
number of operational stations and revenue. Though Radio Mirchi FM radio stations are located in diverse regions in India it's been successful in attracting local audiences in each of these markets. This is largely due to a superior understanding of audience preferences, which enables it to provide content customized to the taste, language and culture of the local audience.
Industry Size The radio industry revenues for fiscal 2005 were Rs. 3.22 billion, and grew by 14.3% to Rs. 3.68 billion by fiscal 2006. (Source: Central Statistical Organization, "Advertising Expenditure Forecast", October 2004, ZenithOptimedia.). The state broadcaster - All India Radio ("AIR") - contributed 55% of the industry revenues in 2004, which has decreased from 100% in 2001. (Source: "Indian Entertainment Industry- An Unfolding Opportunity", FICCI-PWC Report, March 2005.)
Market share distribution
Total Radio Stations after phase II rollout
Player
Total
Of the top 13 towns (A + and A
Stations Category) Adlabs 44 8 9 13 11 4 0 0 7 4 3
South Asia/Kal Radio 40 ENIL Radio City Dainik Bhaskar Bag Films Zee/Century 32 20 17 10 8
Thanthi/Today/Midday 7 HT/Positive/Raj Pat Red FM 4 3
Based on the National Readership Survey - 2006 weekly listenership data, Radio Mirchi reached 42.7 million listeners across India, which was the highest among all private FM radio stations in India. Further, based on ILT Wave 8 data for which field-work was conducted from January 15, 2006 to March 31, 2006 and which calculates listenership for the age group above 12 years, its total daily reach in the metropolitan cities of Mumbai and Delhi was 5.9 million listeners. There are different leaders across different cities in India. Radio Mirchi is the leader in Delhi (where it has a whopping share of 72%) & Kolkata (share of around 60%), Radio City is the leader in Mumbai and BIG FM holds the place in Bangalore. Applying Porter’s 5 Forces
SUPPLIER POWER ? Dependence on creative talent ? Shortage of creative talent ? Copyright issues with songs
BARRIERS TO ENTRY ? Favorable Govt. Policy ? High ROI ? Capital Requirement not so large
RIVALRY ? Exit Barriers – Low ? Industry Concentration – Low but increasing ? Industry Growth –High ? Switching cost –High
THREAT OF SUBSTITUTES ? Television ? Music Player, DVD player ? I-Pods
BUYER POWER ? Buyer volume is low though it is increasing rapidly ? Buyer leverage is High as customers can switch easily ? Product differentiation is low
Target audience for Radio Mirchi
The basic concept of this channel came into picture from the fact that more than 90% of the young people travel approximately 2-4 hours daily in metro cities to reach their offices and back. And hence to entertain people while they are traveling ’’Radio Mirchi’’ came into existence. During traveling it is difficult to carry a TV or some other entertainment media. (It does not mean that people can only listen to Radio-Mirchi only when they are traveling.) You can just play the stereo and put the ear phones into your ear while you are traveling (By which means you travel does not matter. You may use bus, train car, two-wheelers, anything you like). Can you entertain yourself with Television so easily..??? The answer is NO and that is what Radio Mirchi has been cashing on.
Radio Mirchi primarily targets students, youth and young working adults. Programming and marketing teams primarily focus on this target audience to develop and market content. Additionally, they follow a 'day-part' method for focusing on different segments of listeners. Each day is divided into seven dayparts, which consist of family (7:00am to 11:00am), housewife (11:00am to 2:00pm), youth (2:00pm to 5:00pm), evening drive time (5:00pm to 9:00pm), late evening (9:00pm to 11:00pm), night (11:00pm to 1:00am) andlate night (1:00am to 7:00 am). Focus is on different target groups during different day-parts and programs are customized to attract targeted listeners.
Research on Customer & Competitive Behavior
With no of radio stations increasing up to 7 in several metropolitan cities; consumer is provided with many option, and the time to hold on to a consumer is going down, generally a consumer sticks to a station playing his favorite song and switches to another station when a song of his dislike or too many ads come up.
Based on this songs can be categorized in following category 1. Latest releases. 2. Romantic soft numbers (of recent films). 3. Songs on request. 4. English songs. 5. Old Hindi songs. 6. Hit song (irrespective of timeline).
Accordingly radio stations are catching on and building a time schedule for songs according to city and time. For e.g. in Delhi ? Timeslots for different genre of songs considering the target audience of that time slot. For e.g. afternoon for housewives, night for romantic soft songs.
? ? ?
HIT 95 fm plays generally hit English hip hop songs with few Hindi HIT PEPPY numbers. Only hit 95 fm, air rainbow 102.6 fm and radio city 91.1 fm play English songs. There is also a niche market created by meow 104.8 fm which call itself exclusively for INDIAN WOMEN.
Some Other Key observations are ? In spite of so many radio stations, the general feeling among listeners is, ‘If you have heard one, you have heard them all.’ In fact, a Madison Media study had found that most could not even identify stations at all. Radio Mirchi is trying to stand out in this regard by creating shows which connect with the audience and make them differentiate Radio Mirchi from other station. ? Unlike western countries where radio listening is limited to only in-car listening, in India a major chunk of FM audience is in house also. This ratio of in-house listeners to car listeners varies from city to city obviously depending on the no of car owners. But though small, in- car listener ship reflects on the affluent segment of the population that is again very important for a number of brands. ? Radio speaks to its audience in a highly personal manner. Listeners build a relationship with their local radio personalities - a rich resource into which the FM community in India is tapping on. ? Listenership of radio as indicated by the Indian Listenership Track (ILT) survey is the highest as a percentage among the younger audiences (1529) and the SEC A audiences. The research indicates that almost 70% of SEC A audiences listens to radio everyday. This is the audience most sought by advertisers.
Scope of our Project
With the Phase II policy out by the Government, FM market is going to be fuelled with a lot of investments and new players. The potential unexplored in this market is huge with not even 100 cities covered by all the players combined. There already is and is further going to be even tougher competition for Radio Mirchi to strive and maintain its leadership position. In the further research on this project we will be covering areas of marketing activities by Radio Mirchi & competitors and also try and come up with a recommended marketing plan for Radio Mirchi.
doc_947364867.docx
Report on Radio Mirchi and radio industry analysis. The report covers the radio mirchi as a brand and also the industry analysis of radio in india.
Company – ENIL Brand- Radio Mirchi
Introduction ENIL (Entertainment Network India Ltd.) was incorporated in 1999 under the Bennett Coleman group. In 2000, where the Government formally announced auction of 108 FM frequencies across 40 cities, Entertainment Network (India) Limited won the largest number of licenses, thereby acquiring a national footprint, and becoming the only commercial FM broadcaster present in all 4 Metros, with an exclusive presence in 7 cities. Earlier available in the seven cities of Mumbai, Delhi, Kolkata, Chennai, Pune, Indore and Ahmedabad, now it is also available in key markets of Bangalore, Hyderabad, Jaipur, Patna & Jalandhar thereby taking the tally to 32 stations across India .It's the largest private FM Radio operator in the country in terms of
number of operational stations and revenue. Though Radio Mirchi FM radio stations are located in diverse regions in India it's been successful in attracting local audiences in each of these markets. This is largely due to a superior understanding of audience preferences, which enables it to provide content customized to the taste, language and culture of the local audience.
Industry Size The radio industry revenues for fiscal 2005 were Rs. 3.22 billion, and grew by 14.3% to Rs. 3.68 billion by fiscal 2006. (Source: Central Statistical Organization, "Advertising Expenditure Forecast", October 2004, ZenithOptimedia.). The state broadcaster - All India Radio ("AIR") - contributed 55% of the industry revenues in 2004, which has decreased from 100% in 2001. (Source: "Indian Entertainment Industry- An Unfolding Opportunity", FICCI-PWC Report, March 2005.)
Market share distribution
Total Radio Stations after phase II rollout
Player
Total
Of the top 13 towns (A + and A
Stations Category) Adlabs 44 8 9 13 11 4 0 0 7 4 3
South Asia/Kal Radio 40 ENIL Radio City Dainik Bhaskar Bag Films Zee/Century 32 20 17 10 8
Thanthi/Today/Midday 7 HT/Positive/Raj Pat Red FM 4 3
Based on the National Readership Survey - 2006 weekly listenership data, Radio Mirchi reached 42.7 million listeners across India, which was the highest among all private FM radio stations in India. Further, based on ILT Wave 8 data for which field-work was conducted from January 15, 2006 to March 31, 2006 and which calculates listenership for the age group above 12 years, its total daily reach in the metropolitan cities of Mumbai and Delhi was 5.9 million listeners. There are different leaders across different cities in India. Radio Mirchi is the leader in Delhi (where it has a whopping share of 72%) & Kolkata (share of around 60%), Radio City is the leader in Mumbai and BIG FM holds the place in Bangalore. Applying Porter’s 5 Forces
SUPPLIER POWER ? Dependence on creative talent ? Shortage of creative talent ? Copyright issues with songs
BARRIERS TO ENTRY ? Favorable Govt. Policy ? High ROI ? Capital Requirement not so large
RIVALRY ? Exit Barriers – Low ? Industry Concentration – Low but increasing ? Industry Growth –High ? Switching cost –High
THREAT OF SUBSTITUTES ? Television ? Music Player, DVD player ? I-Pods
BUYER POWER ? Buyer volume is low though it is increasing rapidly ? Buyer leverage is High as customers can switch easily ? Product differentiation is low
Target audience for Radio Mirchi
The basic concept of this channel came into picture from the fact that more than 90% of the young people travel approximately 2-4 hours daily in metro cities to reach their offices and back. And hence to entertain people while they are traveling ’’Radio Mirchi’’ came into existence. During traveling it is difficult to carry a TV or some other entertainment media. (It does not mean that people can only listen to Radio-Mirchi only when they are traveling.) You can just play the stereo and put the ear phones into your ear while you are traveling (By which means you travel does not matter. You may use bus, train car, two-wheelers, anything you like). Can you entertain yourself with Television so easily..??? The answer is NO and that is what Radio Mirchi has been cashing on.
Radio Mirchi primarily targets students, youth and young working adults. Programming and marketing teams primarily focus on this target audience to develop and market content. Additionally, they follow a 'day-part' method for focusing on different segments of listeners. Each day is divided into seven dayparts, which consist of family (7:00am to 11:00am), housewife (11:00am to 2:00pm), youth (2:00pm to 5:00pm), evening drive time (5:00pm to 9:00pm), late evening (9:00pm to 11:00pm), night (11:00pm to 1:00am) andlate night (1:00am to 7:00 am). Focus is on different target groups during different day-parts and programs are customized to attract targeted listeners.
Research on Customer & Competitive Behavior
With no of radio stations increasing up to 7 in several metropolitan cities; consumer is provided with many option, and the time to hold on to a consumer is going down, generally a consumer sticks to a station playing his favorite song and switches to another station when a song of his dislike or too many ads come up.
Based on this songs can be categorized in following category 1. Latest releases. 2. Romantic soft numbers (of recent films). 3. Songs on request. 4. English songs. 5. Old Hindi songs. 6. Hit song (irrespective of timeline).
Accordingly radio stations are catching on and building a time schedule for songs according to city and time. For e.g. in Delhi ? Timeslots for different genre of songs considering the target audience of that time slot. For e.g. afternoon for housewives, night for romantic soft songs.
? ? ?
HIT 95 fm plays generally hit English hip hop songs with few Hindi HIT PEPPY numbers. Only hit 95 fm, air rainbow 102.6 fm and radio city 91.1 fm play English songs. There is also a niche market created by meow 104.8 fm which call itself exclusively for INDIAN WOMEN.
Some Other Key observations are ? In spite of so many radio stations, the general feeling among listeners is, ‘If you have heard one, you have heard them all.’ In fact, a Madison Media study had found that most could not even identify stations at all. Radio Mirchi is trying to stand out in this regard by creating shows which connect with the audience and make them differentiate Radio Mirchi from other station. ? Unlike western countries where radio listening is limited to only in-car listening, in India a major chunk of FM audience is in house also. This ratio of in-house listeners to car listeners varies from city to city obviously depending on the no of car owners. But though small, in- car listener ship reflects on the affluent segment of the population that is again very important for a number of brands. ? Radio speaks to its audience in a highly personal manner. Listeners build a relationship with their local radio personalities - a rich resource into which the FM community in India is tapping on. ? Listenership of radio as indicated by the Indian Listenership Track (ILT) survey is the highest as a percentage among the younger audiences (1529) and the SEC A audiences. The research indicates that almost 70% of SEC A audiences listens to radio everyday. This is the audience most sought by advertisers.
Scope of our Project
With the Phase II policy out by the Government, FM market is going to be fuelled with a lot of investments and new players. The potential unexplored in this market is huge with not even 100 cities covered by all the players combined. There already is and is further going to be even tougher competition for Radio Mirchi to strive and maintain its leadership position. In the further research on this project we will be covering areas of marketing activities by Radio Mirchi & competitors and also try and come up with a recommended marketing plan for Radio Mirchi.
doc_947364867.docx